Photo-Me To Sell Land; Profit Windfall Could Go To Shareholders Or Development

LONDON -- Photo-Me International PLC, the world's largest photobooth operator, said it has agreed to sell land adjacent to its head office in Bookham (Surrey) to Shanly Homes Ltd., a property development company. When the deal closes, Shanly will pay £4.2 million for Photo-Me's vacant 2.2 acres.

The book value of the land being sold is £0.7 million, and its sale will bring in a profit, before costs, of £3.5 million. Depending on whether environmental remediation work is required at the site, Shanly might pay Photo-Me up to £50,000 more.

Photo-Me's main office building is not being sold and will remain its corporate headquarters. The company said net proceeds from its land sale, expected to close in early July, will increase its net cash position. Photo-Me's board will decide on whether to invest that income in the business or return it to investors.

Photo-Me operates photobooth equipment in 24,900 locations around the world. It also runs digital photo kiosks, photobook makers and business-service equipment, along with kiddie rides in the UK.